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Pacific Bell Telephone Co. v. LinkLine Communications

Docket No.: 07-512
Certiorari Granted: Jun 23 2008
Argued: December 8, 2008
Decided: February 20, 2009

PartyNames: PACIFIC BELL TELEPHONE CO., DBA AT&T CALIFORNIA, ET AL. v. LINKLINE COMMUNICATIONS, INC., ET AL.
Petitioner: Pacific Bell Telephone Co.
Respondent: LinkLine Communications

Court Below: United States Court of Appeals for the Ninth Circuit

Pacific Bell Telephone Co.
v.
LinkLine Communications
555 U.S. ____ (2009)
Question Presented:

Whether a plaintiff states a claim under Section 2 of the Sherman Act by alleging that the defendant - a vertically integrated retail competitor with an alleged monopoly at the wholesale level but no antitrust duty to provide the wholesale input to competitors - engaged in a "price squeeze" by leaving insufficient margin between wholesale and retail prices to allow the plaintiff to compete.

Question:

In light of prior Court precedent on the issue, is "price squeezing" still a valid claim under Section 2 of the Sherman Act when brought against a company acting in a partially regulated industry?

Holding: judgment reversed and remanded
Vote: 9-0
Opinion By:
Read PACIFIC BELL TELEPHONE CO. V. LINKLINE COMMUNICATIONS opinion (PDF)
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